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Quebec Court to Hear Unions' Challenge Over Pay Equity Law

Quebec Court to Hear Unions’ Challenge Over Pay Equity Law

October 5, 2026 Priya Shah – Business Editor Business

The Superior Court of Quebec opens arguments on Tuesday on a high-stakes union challenge to amendments in the province’s Pay Equity Act, according to Le Devoir.

Seven Labor Unions Mount a Joint Front

Seven labor organizations are leading the legal assault. The coalition brings together the SFPQ, FTQ, FIQ, FAE, CSQ, CSN, and APTS. They are targeting legislative changes born in the wake of a landmark 2018 Supreme Court of Canada ruling.

From Supreme Court Ruling to 2019 Legislative Fix

The dispute traces back to that 2018 high court decision. Justices ruled that specific articles of Quebec’s Pay Equity Act violated the Canadian Charter of Rights and Freedoms. The provincial government scrambled to comply, passing a new legislative text in 2019.

Labor unions saw the fix as a failure. They argued the framework left underlying discrimination untouched for workers stuck in predominantly female job classifications.

Beating Back Early Dismissal Bids

The fight nearly ended before it began. The Ministry of Labour and the Attorney General pressed the Superior Court to throw out the union filings completely. Government lawyers insisted pay equity disputes belonged exclusively under the jurisdiction of the Commission des normes, de l’équité, de la santé et de la sécurité du travail.

That strategy failed. The Superior Court tossed the government’s dismissal request in 2020. The Court of Appeal slammed the door on the province again, upholding the lower court decision in 2021.

The Battle Over Lump-Sum Payments and Pensions

Tuesday’s hearings dive into the core merits. The courtroom spotlight focuses squarely on calculation methods for money owed to workers.

At issue is the law’s reliance on lump-sum payments instead of retroactive salary adjustments to fix historical wage discrimination. Unions argue that lump sums actively penalize female workers by damaging their pension plans and other earnings-based financial benefits.

The Statutory Mechanics of Pay Equity

Under the statutory framework, employers must measure predominantly female jobs against predominantly male jobs. They evaluate qualifications, responsibilities, required efforts, and working conditions.

When disparities surface, adjustments are mandatory, backed by maintenance checks every five years. Ultimately, the current litigation will decide whether the province’s statutory mechanisms for retroactivity and payment structures survive constitutional muster on gender pay equity.

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